Interpublic loss widens on higher costs; sales up

MelodieWarner

Interpublic Group Of Cos.'
IPG, +1.18%
first-quarter loss widened on higher operating expenses, although the advertising and marketing company's revenue improved more than expected.

Interpublic had seen declining revenue after losing some accounts in 2011. The company had previously predicted stronger client retention and new business activity for this year and said it planned to be vigilant in managing costs, given the shaky global economy.

Interpublic reported a loss of $59.2 million, or 14 cents a share, compared with a loss of $45.9 million, or 10 cents a share, a year earlier. Operating expenses climbed 2.5% to $1.59 billion.

Revenue increased 2.4% to $1.54 billion while organic revenue was up 2.3%.

U.S revenue climbed 1.7% while international revenue increased 3.4%.

Analysts polled by Thomson Reuters most recently forecast a per-share loss of 13 cents on revenue of $1.53 billion.

Operating margin was negative 2.7%, compared with negative 2.6% a year ago.

Shares closed Thursday at $12.92 and were inactive premarket. The stock is up 17% since the beginning of the year.

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